Political reporter

The names ''Liberal'' and ''Labor'' would be quarantined for use only by the major political parties under reforms being considered by the Abbott government to prevent micro parties capitalising on voter confusion.

A tightening of the Commonwealth Electoral Act could spell the end for the Liberal Democratic Party, led by NSW senator-elect David Leyonhjelm.

Victoria senator John Madigan of the Democratic Labour Party may also be in the sights of the ALP if any reforms succeed. Senator Madigan told Fairfax Media ''hell would freeze over'' before he gave up the DLP name.

Senior Liberals are behind the push to stop votes bleeding to little-known parties such as the Liberal Democrats.

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Mr Leyonhjelm infuriated the Liberals when he bagged nearly 10 per cent of the Senate vote in September - scooping $1 million in public funding in the process - and nearly ending the political career of Assistant Treasurer Arthur Sinodinos.

Liberal Party director Brian Loughnane said Mr Leyonhjelm's success was ''almost entirely at the expense of the Liberal Party''.

The Liberal Democrats received more than 400,000 votes in NSW. When the same group ran as the Liberty and Democracy Party in 2007 it drew just 17,000 votes.

Parliament's joint standing committee on electoral matters is to review the 2013 election, and Special Minister of State Michael Ronaldson has said there may be reforms to prevent preference harvesting by micro parties like the Australian Motoring Enthusiast Party, whose candidate, Ricky Muir, snuck into Parliament on 0.5 per cent of the primary vote.

The Howard government tried and failed to tighten the system after a party calling itself ''Liberals for Forests'' proved a thorn in the side of the Coalition at the 2004 election. In 2013 the Liberal Party lodged a protest at the registration of the name Liberal Democrats but the Australian Electoral Commission found it complied with current laws.

The government would risk a serious backlash from Mr Leyonhjelm, who said he would consider voting against all government legislation if it stripped him of his party name.